MassDevelopment.com: Press Room: $50 Million MassDevelopment Bond Helps ISO New England to Expand Facilities in Massachusetts

$50 Million MassDevelopment Bond Helps ISO New England to Expand Facilities in Massachusetts
March 1, 2005

Contacts:
Adam Bickelman, 617-330-2086 or abickelman@massdevelopment.com
Tracy Lawrence, 617-330-2011 or tlawrence@massdevelopment.com

PARTNERSHIP SUPPORTS RETENTION OF MORE THAN 400 AREA JOBS

MassDevelopment today announced a new $50 million financing package for ISO New England, Inc., operator of the region's bulk power system and wholesale electricity markets. ISO New England will use the tax-exempt bond issue to purchase a 64,000 square foot building in Holyoke and expand its facilities by constructing a new 98,200 square foot facility on the same site. The project allows the organization to consolidate two leased facilities into one central location to improve efficiency and streamline operations, while keeping more than 400 jobs in the local community.

"ISO New England was looking at expansion sites outside Massachusetts," said Robert L. Culver, MassDevelopment President/CEO. "The MassDevelopment team is proud to have played a part in keeping ISO New England in the Bay State. This financing will support regional business development and keep hundreds of jobs in the area. This is great news for Massachusetts, great news for Holyoke."

In 1997, the Federal Energy Regulatory Commission (FERC) created ISO New England, one of several regional independent system operators, to help introduce free market competition in the region's wholesale electric power industry. The ISO serves the six New England states and is responsible for centrally dispatching the generation and flow of electricity across the region, overseeing New England's competitive wholesale electricity marketplace and planning for the region's bulk electric power system to meet current and future needs.

"As the complexity of New England's competitive wholesale electricity marketplace has increased, so too has our organization's need to centralize our functions and modernize our facilities. Our move to one facility will help us support future industry developments while enhancing our efficiency," said Gordon van Welie, ISO New England President/CEO.

Holyoke Mayor Michael J. Sullivan and the city's Office of Economic Development and Industrial Corporation also played a key role in keeping ISO New England in Massachusetts.

"Retaining and growing Massachusetts companies is important to Holyoke and MassDevelopment," said Sullivan. "Keeping ISO New England has been one of our primary goals. Through our on-going partnership the city and MassDevelopment have assisted dozens of companies. These efforts complement the many programs the city can offer to companies regarding incentives, financing, and workforce development. This partnership has produced results which at the end of the day stimulate private investment while creating and retaining jobs."

MassDevelopment, the state's finance and development authority, partners with businesses and local officials to stimulate growth across the Commonwealth. In fiscal year 2004, the agency arranged financing for or managed 201 projects statewide totaling more than $1.25 billion. These projects supported the creation of more than 5,500 jobs and 2,445 housing starts.